[ARFC] Deploy Aave v3 on Sonic
Author: ACI
Date: 2025-01-07
Risk Parameters have been provided by Service Providers and this section has been updated 2025-01-30
Simple Summary:
This ARFC seeks the community’s input on the deployment of Aave V3 on Sonic Mainnet.
Background:
Sonic is a new Layer 1 EVM blockchain offering 10,000 TPS and fee monetization for app builders. It is the newest blockchain from the creators of Fantom which reached a peak TVL of circa $14.5 billion in 2021.
Motivation
Aave has deployed on multiple promising new L1 and L2 EVM networks and is often one of the largest protocols on these networks. Given the impressive history of the team building Sonic, and the innovations it promises, it represents a strong candidate for deployment of Aave V3. In addition, the fee monetization for apps has potential to be an additional income source for Aave.
Proof of Liquidity (POL) and Deposit Commitments:
The Sonic Foundation will provide the following, upon its deployment is confirmed:
- 15M USD Funding from Sonic
- 800k USD stablecoins from Aave
- Up to 50M $S tokens Supply
- 20M of USDC Supply
Specification:
Risk Parameters have been provided by Service Providers and this section has been updated 2025-01-30
| Parameter | |||
|---|---|---|---|
| Asset | WETH | wS | USDC.e |
| Isolation Mode | No | No | No |
| Enable Borrow | Yes | Yes | Yes |
| Enable Collateral | Yes | Yes | Yes |
| Loan To Value | 80% | 35% | 75% |
| Liquidation Threshold | 83% | 40% | 78% |
| Liquidation Bonus | 6% | 10% | 5% |
| Reserve Factor | 15% | 20% | 10% |
| Liquidation Protocol Fee | 10% | 10% | 10% |
| Supply Cap | 400 | 3,000,000 | 2,000,000 |
| Borrow Cap | 370 | 1,500,000 | 1,900,000 |
| Debt Ceiling | - | - | - |
| UOptimal | 90% | 45% | 90% |
| Base | 0% | 0% | 0% |
| Slope1 | 2.7% | 7% | 12.5% |
| Slope2 | 80% | 300% | 40% |
| Stable Borrowing | No | No | No |
| Flashloanable | Yes | Yes | Yes |
| Siloed Borrowing | No | No | No |
| Borrowable in Isolation | No | No | Yes |
| E-Mode Category | N/A | N/A | N/A |
Disclaimer:
This proposal is powered by Skywards. The ACI is not directly affiliated with Fantom or Sonic and did not receive any compensation for creating this proposal.
Useful Links
[TEMP CHECK] Deploy Aave v3 on Sonic
Next Steps
- Publication of a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage.
- If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.
Copyright:
Copyright and related rights waived under CC0.
Off-Chain Vote
YAE
611.75K AAVE100%
NAY
3.26 AAVE0%
Abstain
0 AAVE0%
Discussion
Timeline
Jan 31, 2025Proposal created
Feb 01, 2025Proposal vote started
Feb 04, 2025Proposal vote ended
Feb 03, 2026Proposal updated